Tariff suspension on lithium-ion batteries extended until 2027
Published:Wednesday | December 18, 2024 | 12:07 AM
The suspension of the Common External Tariff (CET) on lithium-ion batteries has been extended for another two years until February 2027, Government has announced, in effect making the setting up of renewable systems in Jamaica more affordable.
The Ministry of Industry, Investment, and Commerce (MIIC) announced that the government secured approval of the extension of the CET suspension from the Council for Trade and Economic Development (COTED) for 91,600 units of lithium-ion batteries from February 2, 2025, to February 1, 2027.
Government announced the suspension on the batteries in February this year.
Commenting on the importance of the suspension, Minister of Industry, Investment, and Commerce Aubyn Hill said, “This approval is significant for Jamaican businesses, particularly those in the renewable energy sectors. With the removal of the tariff on lithium-ion batteries, we are reducing operational costs for companies. This enables them to allocate resources toward expanding operations, adopting advanced energy solutions, and driving innovation. These advancements will enhance productivity and also stimulate job creation and investment, fuelling Jamaica’s economic growth.”
The CET is set at a rate of 20 percent.
According to a news release from the MIIC, this decision is expected to provide a significant boost to Jamaica’s renewable energy market. It will enable Jamaican businesses to import lithium-ion batteries duty-free, reducing the cost of investment in energy storage solutions. These batteries are integral to renewable energy systems such as solar and wind power, where efficient storage is critical to ensuring a reliable energy supply. The suspension also aligns with the Government’s broader strategy to diversify energy resources and promote green technology innovation, the ministry said.
Businesses and consumers are encouraged to leverage this opportunity to integrate high-quality, cost-effective lithium-ion battery technologies into their operations and lifestyles. The ministry says it will conduct public awareness campaigns and industry consultations to inform all stakeholders about the benefits and implementation process of this initiative.